Overview of land tax in Queensland

Land tax is a tax on freehold land. For land tax purposes ‘land’ includes:

• vacant land 
• land that is built on
• lots in building unit plans
• lots in group title plans
• lots in a time share scheme
• lots owned by a home unit company.

Land tax is a state tax. If you own land in another state, we advise you to contact that state’s tax office for information on your obligations and entitlements.

The owner is usually the person on the Certificate of Title. This includes every person who is entitled to be registered as the owner on the title.

For land tax purposes, an ‘owner’ of land does not include:

• mortgagee banks
• a body corporate for a community titles scheme
• tenants or lessees under Crown leases.

Sellers and buyers

When there is a contract for the sale of land, the seller is considered to be the owner of the land until the buyer takes possession. This usually happens on settlement, but there are instances where the buyer can take possession before that—for example, if they are able to move in early. Once the buyer takes possession, they are considered to be the owner of the land for land tax purposes.

Note: If a contract of sale is signed before 30 June, but the buyer takes possession after that date, the seller is still the owner for land tax purposes.

If you buy or sell land during the year, the tax is not apportioned between the buyer and seller—the owner on 30 June is liable. If you wish the land tax to be apportioned, this matter will need to be negotiated between the buyer and the seller.

Land tax is assessed on the taxable value of an owner's total land-holdings. We will add up the value of all land that you own in Queensland at 30 June. The taxable value will be the total value of your land, less any exemptions that you have claimed.

Co-ownership

If you own land jointly with other people, the taxable value of the land will be apportioned according to your respective shares. The taxable value of the share of this land will then be aggregated with any other land that you own. If the total value is over the relevant threshold, land tax will be assessed on that amount.

For example, persons who own land as joint tenants will have the taxable value apportioned in equal shares (50% each).

Commercial or investment purpose

If land is owned by 5 or more people and used for a commercial or investment purpose, we will assess the land as though one person is acting as trustee for all of the owners. This means that one person will receive a land tax assessment for the entire value of the land. That person is responsible for apportioning tax between the owners.

To determine if the land is used for a commercial or investment purpose, we will look at:

• how the land is used
• the value of the land
• the number of co-owners and whether they have a business or commercial relationship
• whether the co-owner is an individual, company or trustee.

In most cases, you do not have to take any action—we will contact you to explain your obligations and entitlements. However, if we have not contacted you by 30 June in the financial year of your liability, you must let us know by 31 July of the next financial year.

If you are liable to pay land tax after a decision has been made on any claims lodged for an exemption, we will mail to you a notice of assessment that states the amount of land tax you must pay.

Your assessment notice will issue automatically based on the information that we hold—this includes the land you own and its taxable value. You must notify us of any changes to your entitlements or ownership within 1 month of the change, otherwise you may be penalised.